has been here 16 years and he should not have to use the word "you." thata commitment be given the defense budget will be detected further in this parliament? >> but i can give him is that the 38 billion by cold that we inherited has been gotten rid of gives us the fourth largestthis defense budget in the world, but we will make sure there is a record contrast to the government. across theevealed professions, would the prime minister agree that now is the time to look into nursing and whether we should get back to the patient's bedside?

>> i think the right hon. gentleman makes an important point. i do not think we want to see de profession was asian. we have seen huge improvements, but i think we have to get back to making sure the patient care is at the heart of nursing. you cannot be a good nurse without those things, and i think we need to return to those values. >> i do not expect you to go into full details. >> when we must get out of this side chamber of using the word you. you refers to the chair. >> i do not expect the prime minister to know the full details against the background, does he think is fair with a 1% increase while they have been at

5%? >> but as a matter of house authorities. the point i would make is public frozen of 1%,have and we do think that is fair. the extraordinary position is a support at 1% increase for public-sector workers, but they think people on where fraud and -- on welfare should be getting more than 1%. toohenever alcohol is cheap, more people died. i know the prime minister wants to reduce mortality and cut violent crime. will he meet with me for me to urge him and to understand the space behind minimum pricing and how abandoning this policy would critically undermine future efforts for those who want to do something about it? >> i am always happy to meet with my right hon. friend. we have had many discussions

about these issues. ed alcohol with supermarkets in other stores. i'm determined we'll deal with this. we published proposals and looking at the consultation of the results we have to deal with the problem of having 20 cans of lagger available in supermarkets. it has got to change. >> thank you, mr. speaker. i'm sure the prime minister is aware of the tension -- today we are meeting with them outside 12:30 and we would like to invite the prime minister to join the party group who will be meeting them on the important date, the fourth anniversary. >> yeah. when i look at the honorable lady says, i have a meeting almost straight after with the leader of the party to propose the proposal. it may not be possible to arrange my diary. but i m say we must support

people in old age. [inaudible conversations] would with the prime minister agree with me that the results of labor faile to gain anything? at all? the leader of the opposition -- are completely d utterly have completely utterly without any support in the country as whole. [cheers] >> and i welcome the honorable gentleman, welcome the honorable gentleman. i think you'll get alo >> you have been watching prime minister's questions. because of daylight savings time, on question time and will air on c-span 2 at 8:00 a.m. eastern.

you can watch in the time at c- span.org, where you can find video of past questions and other programs. next, from the conservative political action congress, a debate between tucker carlson and journalists to discuss the issues of the day. >> elizabeth monroe who refuse to continue the tradition of making social calls. she gained a reputation of being queenly. we will discuss her relationship with the first lady born of of the u.s. we will see the role she played with adams.

we will include your questions and comments, monday night. also on c-span radio and c- span.org. >> you are looking at the next industrial revolution. this is an innovation company. --se tools of power people empower people, and it builds iron making layers until your model is done. it. you have >> the real issue is when you go out and you want to use an open network. you do not know what the guy next to you is doing. is he dangerous? we have to work on tablets or mobile phones. no one else has done that. >> i checked in with a fever today.

>> we can do a digital scope to look at a year, knows, and throat. >> it is the highest paying, lowest cost not -- to look at ears, nose, and throat. >> it is the highest paying common lowest cost health care. ch and communications, monday night on the communicator's at 8:00 a.m. eastern on c-span 2. >> the annual conference for conservatives was held last week. tucker carlson and the democrat other thisted each is about 30 minutes.

is going to be fine. ready? when this is over we will be able to see what is right and what is left. fighters fight the best when the crowd lets them know how they are doing. as loud as you would like. are you ready? it is time to introduce our political pugilists. fighting out of the left corner with years of experience as a commentator for cnn after .lecting bill clinton in 1992,

riding out of the right corner, the fox news contributor and standing tall,-- tucker carlson. >> we will have some fun here today. >> this is going to be a three- round bout. there are no rules, and a fighter can be saved by the bell. let's shake hands. we are ready to go. i will be tossing out a series of topics, and each fighter will have one minute to respond. we are going to go based on an order that was decided backstage, completely fairly,

documented after we made sure all voters had id. we are going to begin with paul, and in each case, each of them will be asked the same question. [bell rings] there is the bell. we are ready to go. it is round one, question one -- america -- isn't that magnificent? i can see why you would get distracted. america is the world's policeman. >> get over it. >> thank you, tucker. it is a beautiful facility. to the extent we are willing to let crazy people romp through our neighborhood, yes, we are the world's policeman. we are not the world's social worker. to the extent that we take it upon ourselves the goal or the false obligation to bring universal sufferance to

countries, make sure that people can listen to madonna, bring about democratic elections, that is not our job. we're good at building roads, crushing opposing armies. no government is good at the work of nation building, including ours. then there is the obama wave. find and concord. i do not want america to be in the business of turning every land into combat for democracy -- not democracy. >> they decide they will go to kill some americans. what difference does it make?

>> is she there? you, and thank you for being nice to paul. i want to answer this. of course we are the world's policeman. it has been left to us. the extent we are unwilling prevent our people kids from going to school, we are the world's bullies. what we are not is the world's social worker. the false obligation to bring universal sovereign two countries, to make sure people can listen to madonna, these are

worthy goals. we are good at the big tasks. building roads, opposing armies. no one is as good at nation building, including ours. >> next question, and, tucker, you will go first. federal debt does not matter. we can stimulate our way to prosperity. >> you are insane for suggesting such a notion. i believe that that matters because i believe in math. here's what i know about math -- this is another way of saying i believe in science. you often hear the left lecture on science. we are on the side of science. anybody who ignores the obvious point that if you expend more energy than you bring in, you die, whether a business, person, or country. the person who ignores that is against science. in the long run, a country that spends more than it raises

cannot continue. it is an existential threat to our country. that was established by economist after economist. common sense confirms it. the federal debt, there's a bigger problem. >> let me quote dick cheney, who said ronald reagan taught us that deficits do not matter. dick cheney was wrong. he was wrong then and now. of course deficits matter, but any one of you who supported the bush plans has no right to speak. i helped bill clinton balance the budget and build a surplus. why? because we had good economic times. in good economic times, you pay down the deficit, but reagan and bush did not, and in bad you have to stimulate in

the near term, as thank god president obama is doing. we democrats will balance the budget once again. >> paul, which is more important to america's pursuit of happiness -- which is more dangerous, excuse me, than a 357 magnum -- >> in my home you would find 17 guns and no cans of soda pop. i have the right wing position on the giant drink soda thing. i do not like the idea, and i think bloomberg is a fine man, but i do not like government

telling us what size to buy today. this one, i am with tucker and most of you. i have the right wing position on gun safety. i have the same position as ronald reagan, who was for a waiting period before you buy a gun. i have the same position as the president of the nra before he flip-flopped in the last few months. if you give a dr. pepper to a bad guy, all he will do is get fat. if you allow that bad guy who is either a criminal or insane to get a gun, then bad things happen. >> as someone who is neither a criminal or insane, i disagree.

both firearms and big gulps are integral to american happiness for similar reasons. firearms are the root of the right to self-protect. if you do not have the right to protect yourself or your family, you have no rights at all. without firearms you are incapable of doing that. it's that simple. i do not think someone who is either insane or criminal ought to get the government's permission before i buy or sell a firearm from someone who is equally law-abiding. i am a threat to no one. as for big gulps, this is another battle being waged by the left. they did not ban cappuccinos because their donors drink them. imagine how the great unwashed likes that. it is a basic attack on your simple pleasures, and it is one of many -- the right to smoke, the right to get a tan. stand up for your rights to please yourself.

>> american seniors -- should they be more afraid of our private social a separate accounts or "obamacare"? >> senior should not be as afraid as they are. i think both parties get a lot, especially the democratic, but republicans, that is scaring people, and it is wrong. mostis the safest and secure country in history, and all of us, every person, will die. the faster we accept that, the

happier we will be. that said, you ought to be concerned with a government that decides it has the power and the knowledge to determine choices of what kind of health care you should pursue against that. you should not let them take away your big gulps. people my age ought to be concerned about this attempt to organize us into more efficient units. there's not one person smart enough to organize 309 million of us into one efficient unit. >> i speak for many when i say thank god for harry reid stopped bush's plan to privatize social security. so you wanted to turn her grandmother's retirement to lehman brothers, bear stearns? int is the people who were charge. social security has been around for 75 years and has never missed a check. thank god for social security. as for "obamacare," call your mother, father, ask them if like being on medicare. they love it. yes. and yet medicare only has 5000

employees. private insurance has hundreds of thousands of employees. inernment, more efficient health insurance. more effective, lower overhead, better outcomes, lower prices. the only change i want to make is change the eligibility age to birth. let's all get on medicare, then we will have a real system. >> i will not answer that, but i would love to all on. have you been to the dmv lately? yes. house of service. >> when secretary of state hillary clinton appeared for the senate hearing on benghazi, here is what she said about the cause of the riot -- [video clip] >> what difference at this point does it make? >> the last question in round

one is her question -- what difference does it make? >> we know americans were killed their deaths must be avenged. that is what she was saying, and i hope everybody agrees with that. one of the problems i have is when our embassies and consulates in 11 places were attacked by terrorists in the bush administration none of you said boo -- uzbekistan, karachi, saudi arabia, in yemen, in athens, all around the world we were under attack, and republicans voted against spending the money to harden and those facilities and make them safe. if you are upset about benghazi, i suggest my republican friends look in the mirror. >> i would say this -- it is worse having the deaths of americans abroad. we do not have a single perpetrator in custody.

hard to bring perpetrators to justice if you do not bother to find out who they are. hillary would not be an effective police officer. it does matter because details matter, justice matters, because the truth matters. it is worth taking the time to find out what happened for one reason -- to prevent it from happening again. >> that is the end of round one. [bell rings] and now for round two, the fighters are allowed to ask each other questions, and i remind the fighters that you should try to ask the questions that the mainstream media is afraid to ask, but it is open field, your choice, and we will begin with tucker. >> you are close to the former vice president al gore. his overriding purpose is saving the earth from an holocaust.al

he often says that. given that goal, were you surprised to discover he just took $100 million from the oil- rich family that runs qatar, and next time you see him, will you ask him to give that money to an environmental charity with his apologies? >> when our grandchildren inherits a planet that is still alive and functioning, they will think al gore, the nobel peace prize winner. you do not believe in climate science, as tucker pointed out. it is real. i think this is ingenious. this is gore at his best. he is using these funds for good. he is a genius. >> that was valiant.

here's my question. mr. carlson, mitt romney could live anywhere he wants -- except the white house -- and so he chose to sell his mansion in utah and buy a mansion in liberal la jolla, california. why did he decide to settle in california? >> mitt romney -- the name rings a bell -- as someone who is from la jolla, i would say he inexplicable, to be honest with you. i would have been happier had mitt romney moved to highland park, texas, for example. there you go. or louisiana. i will say if you are interested in drinking complicated coffee and going surfing, la jolla is fantastic.

>> he does not drink coffee. >> that is right. >> just froth. >> i ask you this question last year. i will ask it again because you are qualified, of all the in this room, you know more about this than any. you are personally close to the clintons. do you believe that she will run for president in the next cycle, and do you think she should? >> do i think she should? absolutely. i work backwards and say, will she be a good president? the answer is no, she would be a great president. it is interesting now that we have moved toward some potential mythical one-day hypothetical hillary candidacy, all right wingers are saying she

is evil. that is a sign that you guys are afraid. i hope she does. i have no idea. i think she will live a life, write her book, reacquaint herself with the real-world, having been traveling the world. she is not a republican society lady. she is a real woman. what she will do is go around in a non-governmental capacity trying to empower women because where women are empowered, the whole society does better. it is absolutely true. she is a global force for good, and i hope and pray that she runs for president. >> my last question. on the level, i'm a professional bush basher, which is a unique gift i have. it is really easy.

i will say this about george bush -- his emergency plan for relief was wonderful. was outstanding. it was america at its best. it was george bush at his best. it's a more than any president -- this is an honorable thing, what i just did about bush. >> that program would have been wonderful if he had raised the money himself. it is not the government's role to pay for medicine to foreign governments. what is the one thing that obama has done that i applaud, and i have to say his second inaugural, just two months ago, the president walked down the length of pennsylvania avenue chewing nicorette. i respect that what appeared to be in the world, living in the

world, where all of your buddies who worship you like jesus are telling you the most of the thing you can do, not commit abortion, but used a tobacco product -- that is the worst thing you could ever do. for this guy to flaunt his addiction in public was courageous, compelling, and an inspiration to all of us. go, barack obama. >> that is the end of round two. now for the final round, the lightning round. we will play a word association game. i speak a word and each fighter responds with the first thing that pops into your mind, and keep it short. we will start on the left with paul. are you ready? round three begins. [bell rings] benghazi. >> not the result of the youtube video. iranian nukes. scary, but not as great a threat as medicare.

>> unacceptable. must be stopped at all costs. >> "argo"? >> i love any movie about the carter administration. >> the only good thing that happened in the carter administration. [applause] >> afghanistan. >> never going to be belgium. >> thank god obama is ending that war and bring those troops home. thank god. >> irs. >> jesus loves tax collectors. that is why he accepted the hospitality of tax collectors. they called them publicans. >> if only the border patrol were as feared and effective. >> hispanic america. >> winnable. >> democrats, and gracias.

>> chinese cyber attacks. >> democrats, and gracias. >> chinese cyber attacks. >> how can people be so stupid and not know why there are 6000 dead pigs floating through their river? how does that work? >> i would say more threatening than anything happening in the middle east. sorry. >> putin. >> evil, yet hilarious. [laughter] >> bush called him pooty poot. which is embarrassing. he is evil, but -- you have not seen the pictures. >> nra. >> does not represent most gun

owners like me who are for president's obama's gun regulations. you have to deal with the reality. >> the only organization working to protect the constitutional right that "the new york times" hates. >> sequester. >> y2k of politics. it came and went, and no one noticed. >> it hasn't gone, and it is so incredibly dumb and it will hurt this country. a totally self-inflicted wound. >> rich people. >> right there is my favorite rich person right there. i cannot hate all rich people. >> arrogant, but i hope to join their ranks. and to be honest. >> poor people. >> it is a relative measure, but

i would say a group i have great sympathy for and deserves a shot. >> there is this big that concern as the poor. they love the poor because they created so many of them. i will give you credit for that. >> ashley judd. >> why does every right wing guy i know think it is horrible to that she posed naked in movies, but thought it was fine that scott brown posed nude in a magazine? i have a different taste in nudity. >> i was against scott brown's nudes. hair-on-fire crazy, but the gift that keeps on getting. >> clint eastwood. >> oscar for the best political convention. >> i will not tackle a legend. i am not going to attack an 80- year-old legend. the guy has done great, great

film, i am not going to attack him. i will not attack that. >> tea party. >> harry reid's best friend. thank you for saving the majority in the senate, tea partiers. >> understood. >> reagan. >> principles. >> principles and liberals. he was ahead of his time on gay rights. signed amnesty for undocumented workers. reagan was a liberal. >> president barack obama. >> greatest president of the 21st century. obvious. even you have to agree he was better than bush. >> i would say cold, remote, and deeply cynical. >> an easy one -- god >> present in the details. >> god is love.

[applause] >> just by luck of the draw, you lead with satan. >> hate. >> the dark lord of good intentions. >> last one -- hugo chavez. >> satan's roommate now. [laughter] [applause] >> i really wish i could annoy you, but he was a -- >> that is the end here and we need to hear from you. who is the winner? who is it? tuckergala, or is it carlson? >> i win. is counting the votes.

>> you go back and read the papers again. listen, we want to thank each of these. we want to thank you, and especially want to thank paul begala. a little more of an uphill climb for him. >> it is so much fun. >> we're delighted to have you both. thank you so much. [captions copyright national cable satellite corp. 2013] [captioning performed by national captioning institute] cpac held a conversation about the future of the republican party. speakers included a senior political an example of -- nalysts, michael barone, and representative ann marie buerkle from new york. this is about one hour. >> all right.

i have been -- first of all, good morning. i hope you are plenty caffeinated. tasked to give some opening remarks, and anything i would say would just be noise, so on would just keep this incredibly chris, which is something i almost never do, -- keep this incredibly crisp, which is something i almost never do. we are fighting against the basic human instinct not to reexamine painful events, but i have noticed that all successful organizations forced himself to answer the most basic questions, themselves to answer the most basic questions. we will have a round table conversation in which we get to and suggest ways

to keep it from happening again. with that, i want to introduce the great michael barone. of 309 million americans, he knows the most. >> number one out of 309 million americans, thank you. i am a numbers guy. the electionk at numbers, and i cannot think of a more fun way to spend the evening than to stay up at night. i used red for republicans and blue for democrats. the percentages for each candidate and so forth. there is nothing like that, and when you have a new election to crunch, even one that your

candidate lost, it is interesting. one of the things that struck me about this election, the 2012 election, he is that in many ways, it resembled the 2004 election, eight years before, a winner with 51% of the vote. wins by 51% them up 48%. 48%. guy from massachusetts, though they obtained their money in different ways. i am reminded of a comment that margaret thatcher made on the floor of the house of commons, and i think i have its somewhat wrong, but she said you can inherit money, you can make money, you can marry money, and you can steal money, and the right honorable gentleman has done all four.

in this case -- but there was one big difference between the 2004 and the 2012 election, and that was turnout. gauget is kind of hard to initially from an election because an american election, in the state of california, where employee union members count the ballots, it takes five weeks for them to count all of the ballots. since they are about 12% of the country, we do not get the final turnout numbers for quite awhile. in brazil, they do it in five hours, but, after all, in brazil is a far less primitive place than california. is a- after all, brazil far less primitive place than california. he won more popular votes than he won four years before. that was an increase of 23%. john kerry also won 60% more

votes than al gore had won four years before -- had won at 6% 6% morees -- had won votes. there was a huge increase in turnout. in this election, barack obama received 3.5 million fewer votes than he received four years before. a 5% decrease in votes. mitt romney received about 1 million more votes than john mccain. said andmmonly reported that he received fewer popular votes than mccain, and that is because of the delay of california and some of the other west coast states in reporting their numbers, but when they finally came in, he did. obama clearly benefited from a

superior micro targeting and turnout effort, building on what the bush campaign had done in 2004 and then the substantial advances the obama campaign made in 2008 and working through a four-year period. they used consumer preferences and things of that nature to identify strong and unwavering obama voters, and then they used personal contact with a message. towards the voter propensities. geared towardsge the voters' propensities. you can see the results in the 12 target states, most of which had turned out increasing, even though -- most of which had turnout increasing.

they turned out black, hispanic, and liberal voters -- gentry liberal voters. if younancy pelosi -- --nk nancy pelosi more of a grudging acquiescence. the republicans did not have a republican -- republican-leaning voters did not have the a comparative balance of the enthusiasm that they had in the 2010 -- in another year. that was absent. i do not believe the obama campaign actually met their

numbers. that is to say, i do not thing they turned out as many numbers as would be necessary to win, but they turned out as many people as ended up being needed to win, including florida. one of the interesting things about 2012 is at the presidential level, the numbers look a fair amount like 2008, particularly in the target states, reflecting the compared to the advantage that the obama campaign had in turnout. -- reflecting the comparative advantage that the obama campaign had in turnout. somelican managed to boot senate races that they should have won, as they did in 2010,

but they maintained, by in large, the house of representatives, losing only eight seats, and their position was very strong. that position that they build up in 2010. they lost legislatures in maine and minnesota but by and large kept legislatures that they had 2010 and had the kind of advantage they have not had in state legislature in many years. many states that have both houses controlled by republicans. they are not small states. is 13 states with a democratic governors -- with the democratic-- with governors. let me leave you with a final number from the exit poll.

electorate, when asked if the government is doing too many things better left to businesses and individuals, 43% said government should do more. that is in line with the trend that we have seen for the last 30 years and 40 years in response to general questions of this kind. that does not mean that runners -- that voters have resolved every position, but it does mean that i think we are right to judge that even with an the obama campaign engineered it is not a belief in greater government. thanks. [applause] thank you, michael.

that was reassuring. and now, i want to bring of someone who has achieved near impossible, getting elected in new york state as a sincere, out of the closet conservative, and that provides real lessons for the rest of us. buerklerable ann marie joins us. >> thank you, doctor, for that kind introduction, and, yes, it is true, there are conservatives in new york state, and we are proud to be there. [applause] before i begin my comments, i want to ask you to keep in your thoughts and prayers the men and women that keep us safe, so we can be here this morning. we thank them, we think our our veterans,hank and we think our service members for keeping us say if so we can

be here. safe so weeping us can be here. first of all, what we know. we know very well now that we in socialsoundly media and the ground game of barack obama. toparing the rnc phone banks be sophisticated social media of barack obama, and you begin to -- phone banks to the sophisticated social media of barack obama's, and you begin to understand. republicans lacked enthusiasm and energy. the discussion about why that is, that is for another day, but barack obama won in a town that of their advantage.

one in a town where he did not have an advantage. looking at my case, talking with all of my colleagues that lost, the campaigns that were run against us were national wasaigns, so my opponent basically muzzled. he was virtually silent during the campaign. thecampaign was run by teamsters, seiu, michael bloomberg, the son of michael soros. is athey did was, and this lesson for republicans to understand what they are up against, they employ the use of fear, and as you know, the war against women was first and foremost in their platform in running against someone like me.

i am the woman who graduated from high school in the 1960's. i am a proud mother of six children, four girls, 13 grandchildren, four -- 13 grandchildren, some of which are girls. i am the first woman to hold the seat in congress for my district, and yet -- [applause] they portrayed me as was someone who was anti- woman. it is laughable, but they did it successfully by employing fear tactics, and that is so significant. the democrats are employee behavioral psychologists, and the republicans do not understand what they are up against -- the democrats are behavioral psychologist. they want to make us feel guilty.

reallyublican party needs to get their arms around that. where do we go from here? number one, first and foremost, the republican party cannot be afraid of change. in fact, if they do not embrace change, if they do not understand that they need to get away from the status quo, the party will become extinct. they really have to understand how to inspire the american people, how to tap into that human spirit, and with all of the respect that i can muster for the party, they have to understand that the days of the gold boy party, the days of the establishment republicans are forever gone -- the days of the ofd old boy party, the days the establishment republicans are forever gone. in fact, all americans are looking for a party that inspires, a party that gets that

human spirit going. just think about what rand paul did last week with his filibuster. [applause] people,red the american the thousands of tweets. that is what we need to do more of, and that is what republicans need to understand. the republicans need to make them understand they are a vital part of the party, and we cannot be according minorities -- orrting minorities, hispanics or african-americans just at election time. republican party has to change its ways and embrace all of those groups as part of the dorican fabric and needs to it to be successful. the other important thing and what i feel so passionate about

is that you will hear many talking about what republicans need to do to win elections in this country, and one of the things you hear is that we need to moderate, we need to move more to the center, we need to abandon our conservative principles. thelieve that is absolutely wrong way to go for the republican party. [applause] the strength of the republican party depends upon our conservative principles. those principles are the essence of what connects us to the american people. that is america, those conservative principles. that is consistent with our founding fathers. that is what makes us the greatest nation ever. us to reallyme for emphasize and make every american believe that our beliefs are what will make this country better. we are a party for all people.

we believe that the greatness of this nation does not lie in that big, bloated bureaucracy in washington. the greatness of this nation lies with every citizen. that is what makes this country unique. that is what makes this country the greatest country. we need to distinguish ourselves from the middle and from the progressive left. we need to emphasize the individual, emphasize the individual -- emphasize smaller government. thisis how we will get nation back on track. we are not going to settle for trillions of dollars of debt. we are responsible. we want to make sure our kids we a better america than were handed. we should embrace those principles. we should be proud of those principles. that is right.

[applause] do that, ct, when we we erase the principles of ronald reagan, abraham lincoln, consistent, principled conservatives. we cannot move to the center. we need to be solid, and we need to be firm in what we stand for. in doing so, and i will end on this note, by adhering to our conservative principles, that is how we will win elections, and more importantly, and the reason all of you are sitting in this room today, here is that we will have a better united states of america. today, it isom that we will have a better united states of america. acountry not laden with debt, country with a clear direction. that is what our legacy should be. so i am so pleased to be here

with all of you this morning, because i know you love and care for this country, and i thank you for all you do for the conservative cause. andgod bless our military, may god bless the greatest nation in the history of the world, the united states of america. thank you. [applause] well, it is possible that there is someone in america that has covered american politics fund, but i don not know who that would be. we are pleased to have is -- his analysis. ladies and gentlemen, john fund from american spectator. on theink you put me

scrapheap. i am teasing. my, tucker, i find words in talk. >> that is inspiring. >> i knew cpac had some unfinished business. when i came here yesterday, at 3:00, there was a panel of top political consultants. panel of political consultants. there is some explanation that needs to be made, and that is why i think we all should understand something that has changed in american politics. you know, it used to be that candidates would say they want to run government like a business, which is interesting because government is not a business. like aot going to be run business, but i will tell you what has become a business in america. it is politics. there are an awful lot of people

on both sides of the aisle that derive a very good income from politics, and the amount of money in politics is vastly larger than when cpac started years ago. isone of the principles accountability and performance- based results and judging people by their results. well, for the consultant community, i do not think that has always been done in recent years. i think democrats and liberals have done a far better job of putting the consultants that do not succeed in to the minor leagues for awhile until they but prove themselves again, on the republican side, they seem to prosper, in many cases, and while i do not think we should shoot all of the consultants, i think we should look at how in the world they are judged and how a party that believes in business and baseball and all aspects of life somehow does not seem to apply

that to political consultants as often as they should. now, there have been some good works. "national review" and other publications have started to look at this. you as the audience should demand more of this, because unless we establish some accountability about what goes right and what goes wrong in politics, we will get the same thing, which is defeat. some things from the election that i do not think are mentioned enough. we have all heard about deficiencies with african- american and hispanic voters. let me point out that the most precipitous decline was among asian voters, and they are not insignificant. they are now 3% of the national electorate, concentrated in some states that matter, such as new jersey and nevada. i have to tell you that this is a constituency that conservatives should be able to

appeal to, and they have appealed to in the past. george w. bush won the asian vote. got a certain amount of the vote because of ross perot. in 1996, bob dole lost to bill clinton badly, but he carried the asian vote. things have been on a decline ever since. the point that mitt romney managed to win only 26% of the asian vote. there are pockets of agents' supporters in the republican there are pockets of asian supporters in the republican party. withling to them educational choice and opportunity and small business. with the exception of nevada, the asian vote collapsed.

now, michael targeting. e have heard from michael -- now, micro targeting. we have heard from michael barone. a friend of mine was handed an ipad and a clipboard before the election and was told, "this is the precinct you are going to walk." is onlysaid, "this four households." and they said, "that is ok. we have collins the messages -- , andve honed the messages we have decided that this is the script to appeal to those voters, and your job is to go out and get those, and nothing else. we will give you another precinct in the afternoon."

she found them, and they were home, and she got the votes. that is micro targeting. ford, a former head of the council, he has said, of course, obama had a powerful message, but he was also able to find voters in places like colorado and florida that have not been found before, and we will have to emulate that if we want to have success. lastly, there is one thing we have to worry about. we are seeing an attempt to change the rules of the game. it is not just micro targeting. it is an effort to obliterate the voter registration we have. all of the liberal groups are trying to push for something called mandatory voter registration. this would be a disaster. course, we have an antiquated voter registration system.

-- of course, we have an antiquated voter registration system. someve many that are dead, registered in more than one state, and the way to fix that is not to throw away a whole registration system and take everyone from a driver's license list, everyone from a welfare lists, everyone from a property owner's list -- everyone from a welfare list, everyone from a 's list. owner comef this is going to together this november because we have off-year elections, and i will tell you right now that new jersey looks like chris christie is going to win a landslide election, and that means the other one will be virginia. virginia will be a very close election. the micro targeting that was

mentioned, in richmond, there are already organizers going through the neighborhoods, trying to make sure the democratic message reaches them. the message to you today is this. be competitive in 2016, the road back begins this year in virginia. you arein in virginia, back. if you do not, here is what i fear. the biggest weapon the other side has is psychological warfare, impugning to you the belief that you cannot win. it is time to give up. there is no way you can possibly come back. the way to come back is to win. the way to win is to absorb the lessons of 2012 and use them in 2013, and the best way to do that is right across the river in virginia. [applause] >> thank you, john.

the committee makes a lot of mistakes, but every once in awhile, they knock it out of the gave as they did when they an award to my favorite cartoonists in the country -- cartoonist in the room. .ichael ramirez he also does work for "investors business daily. daily." they may tackle you to the ground and force you to delete the pictures. on three areas of this. campaign and the romney candidate. how did an incompetent president and a reckless administration with a dismal record -- remember

when the white house was common with the question of if we were better off, how did they get reelected? poverty increased. americans on food stamps increased. dropped 4.1%.ome families lost $4,000. federal expenditures grew from $2.90 trillion to over 3.7 trillion. -- over $3.70 trillion. gas prices went up from $1.84 per gallon to $3.84 per gallon. obamacare and the first- ever u.s. credit downgrade in history. so how did an administration that has clearly demonstrated it is not capable of doing its job get reelected?

a mainstream media demonstrates on a daily basis that it is not capable and not willing to do their job. [applause] played a role in defining the candidates and their message and insulating the president from damage. let me give you an example. the media reported unemployment dropped and that 236,000 jobs were added last month. what they did not tell you was that more people had dropped out of the work force. "investor's business daily" did. they did not tell you that 10 million people have dropped out of the labour market or that a

long-term rate is higher -- dropped out of the labor market or that the long-term rate is higher. solyndra. i did not turn down the keystone papillon and -- pipeline, the republicans did. the lockerbie bomber. mother was denied health insurance coverage when she was dying of cancer. benghazi. and the most transparent administration in history. the otherooked shortfalls of the president and define romney as rich and of touch with the average man.

-- and out of touch with the average man. wheny did a poor job, and he did, the media was there. let's talk about demographics. it has been said that romney lost by as little as 350,000 votes. the popular vote was much closer than the electoral college votes. with only one-third of the eligible electorate weighing in. got 38.3% of the electorate. 206 votes of the electoral college. about 61ar vote, million. this was the first time an has won withesident

less votes than his first election. the problem was conservative and republican voters did not show up to vote. now, consider this for a moment. it only took a 66 million votes to get elected president and a population of 315 million. -- it only took 66 million votes. union members, federal employees, 20 million state employees, 50 million local government employees. now, granted, being dependent on entitlements does not guarantee you will vote for one party or even that you will vote at all. people andvironmental others, and you get the picture.

there is not a question that there is a shift. there are some things conservatives have to do to accommodate it, but the president was elected with less votes than before. there is no question that the primary challenge hurt the gop candidate. spent hurt his campaign. romney's suffered from being a rich person, defending being a rich person -- romney suffered from being a rich person, defending being a rich person, which is a shame in a free- market economy. i am a miami dolphins and. -- i am a miami dolphins fan. they are great at playing until they lose the game. after had the lead until

the first debate. you cannot fight by the market of queens very rules in a street fight. lesmarquess of queensberry ru in a street fight. only 51% of one-third of the eligible electorate, that is not much of a mandate. we elected the same republican

majority in the house with the same speaker of the house, and through the incompetence of some senatorial campaigns, which elected the same majority leader in harry reid. three things. e need to retake education, where they transform education into social engineering and revisit history and revise it. popular culture. they have to demand immediate reform. bold.vatives need to be they have a better argument and a powerful ally, the truth. and subscribeth to "investors business daily." business daily." >> awesome.

overve some time to mull what conservatives should do next, and i was struck in your comments about the romney campaign. i remember thinking that i like everybody who is running. super nice people. i would have them babysit my kids, but it was hard to see any of them get elected, and i am wondering if there is something that isepublican party being done wrong when it comes to choosing candidates. wheatfield in the 2012 presidential election. the 2012 field presidential election. basically from 2003 to 2006, republicans and many conservatives were loyal to bush. they adhered to more or less the

bush program, including medical drugs, and i think there was a conservative case for that bill. that is another panel. but, basically, bush's job rating really crumbled in 2005 as people were watching the television violence in baghdad and new orleans, and he never really recovered. republican candidates to head mauldin themselves in the bush mold ended up not -- republican candidates who had molded themselves in the bush mold ended up not running.

so you're operating in a kind of vacuum. i think there are prospects for of candidates.d congressman, is there something wrong with the process itself though? think i know some who can win a general election. is there something deterring them from getting involved? >> with my own election and other elections, what the other side is doing is to tear down that person personally. that is a tremendous burden. when you ask somebody to run for office, they have to be able to sustain that. , what our elections have become. , what does heerg care about upstate new york? to ask a candidate to subject

themselves to that i think as to who is willing to take this its, and to michael's point earlier, i think the republicans cannot be afraid of running someone who is a core has it inive, who their gut. always like romney as a person. i like him now. he is a good man. but there has been this reluctance to do an autopsy on that campaign, what went wrong. barack obama just got reelected, so maybe it is time to think through that specific campaign and that specific candidate, but republicans often have this politeness. >> right, and what criticism

there is is often just directed at consultants. >> the go. >> -- bingo. the would suggest republican party probably needs a more gritty, more populist approach in dealing with the electorate, and i will give you an example. there are some that still pull their punches. i think after tarp and after the meltdown of the 2008 situation, there was room for a candidate to come forward to say, "you know, the banks really have become too big to fail." i think we should have gone fter some things, including solyndra. and the president's own autopsy is coming out.

there were about 3 million blue- -collar nd pink candidates who did not vote or voted for others. romney is the antithesis of a populist candidate, and i think that hurt. i cannot going after too big to fail, not going after the corporate situation, i think it sends a message to voters that this is the party of fat cats and that we are not looking out for you. >> you would be defending the free market. >> in the best sense of the word. the most important thing republicans need to do to appeal to the voters that did not show up in 2012 is one thing. being pro-business is not the same thing as being a conservative or being pro market.

michael, probably the most evocative and truest inmost -- image i have seen since i was at the louvre. that is the world i have lived in. but it is also, hilarious, your depiction of it. maybe conservatives should get a sense of humor, too. >> let me tell you what the democrats do which is very, very good. redundancy. concise slogans. it does not have to be about accuracy or the truth. they have their leadership meetings during the week, and they figure out whenever the word is going to be, and they repeat it like a mantra -- figure out whatever the word is and they repeated like a mantra. it is like a urban myths.

-- myth. enough, it becomes the truth. republicans should not be afraid to take the gloves off and point have antruth when you incompetent administration that is doing horribly. anyone can drive down the street. two of my favorite restaurants that have been around for 30 years have closed down. vacant businesses. it is not wrong to point that out and say that is the reality. we need bolder candidates. john is entirely right. the gop is supposed to be the party of the free market, individual responsibility, and liberty, and freedom, and they should focus on that and not have a garage of infighting at the very beginning on those issues -- have a garage -- barrage of infighting

at the very beginning on those issues. >> do you have specific recommendations for those that have been repelled by the party, hispanic voters, asian voters, etc.? i like romney. up at solyndra, so they would not know about it in advance. i think he did better than any of the other possible nominees. what do republicans need to do? i think, in part, they need to show, and here i will criticized romney -- more appreciation for

situations.as and hispanic center has somewhat reluctantly computed that there has been net migration from the united states to mexico on balance since 2007, since the housing crisis went on, so something like self deportation is taking place, but it is an abstract term, and it is a term that does not show any sympathy for the people themselves. if you look at the realtytrac 2007, 2010, and you look at the counties where they are, including the inland empire in california, maricopa county, some of those foreclosures were hispanics, some people who had in some cases been cajoled to

getting mortgages by spanish- speaking mortgage originators from countrywide and so forth. no 2-2's.on't need 2's." w- .hose people lost out they had a dream. and the dream was shattered. let's show an appreciation of how some people's dreams were bad government policy, not by the free market, and let's show that we have policies that can help them choose their future and achieve their dreams. if io, basically, understand what you are saying, and james carville said me, drunk o made --

on an airplane, if people think you hate them, they do not like it. that appears to be kind of what you are saying. congresswoman? >> i would agree with that. what the republican party has to do is stop being afraid of uncharted waters and in braes, whether it is latino or women. , whether it is latino or women. when you do not appreciate someone's plight in life, appreciate that they are fearful that a benefit is going to be taken away from them -- if you do not make your case -- we are not making our case to those communities. they are all looking for a place to go. they cannot relate to nancy or deborah wasserman

schultz. --e good old boyes and the good old boys and the good old party. california,unty, reaganrototypical county. some of the republicans in that county have had active outreach in that county, and what they have told me, someone has said 90% of life is showing up. in most places in the country, republicans do not show up at citizenship ceremonies where people are sworn in and become new american voters. if you do not show up, they do not know who you are, and it is easy to think you have florence.

-- horns. full ofwashington, particularly loathsome creatures. but showing up and demonstrating that at least you care. you would be amazed at what knowing just 50 words of spanish will do. of course, you do not know spanish, but you took some time to show some pleasantries, which enhances the conversation and relationship between people. >> you live in the county we were just talking about. >> yes, i live in orange county. >> which is still republican. >> i can say, when i was at "the l.a. times," i would have to wear a kevlar vest and helmet just to get to the newsroom.

at the hispanic community, and fundamentally, they are very fundamental -- very religious, family-oriented people. a conservative opportunity. to i just think you need stick by your principles, and you need to be bold. look. if you have a media that is conspiring against you where you cannot have a fair fight, you have to demand more out of the media, and i do not know how to make that change. talking on a broader level about the three solutions. progressives are very smart. you know, in the united states, we lead the industrialized nations in reading, writing comprehension until the sixth grade, and after that, we fall to the bottom level. i cannot see why conservatives do not take on the education apparatus. it is doing a bad job. we have to import engineers and

h-1b visas, and on top of that, you have a media .tructure and ought to use humor, humor is a very powerful vehicle. that is what i do as a cartoonist. ronald reagan told a joke. in the united states, political cartoons, you can do them about and in russia, the cartoonists have to do cartoons about the president of the united states.

that was great. we can reach a much broader audience. >> tucker, i will make one at criticism of the romney campaign. understandess people taxes, they pay them, and they understand regulations, he they have to labor under them, but they also understand opportunity to expand their business. the romney campaign was approached by many people. you should reach out to small- business owners that are hispanic, african-american, asian, and they chose not to take that up. i think that was a great lost opportunity, because people understand the message, and they are not primarily under -- interested in immigration. we have something that can be unspecific use to you, and our message has specific residents, and their message is basically 1% growth -- message has

resonance. >> they need to do it for the right reason. when your motivations are pure, good politics makes for good policy or good policy makes for good holiday experience they don't do it -- good policy. they don't do it for the votes. >> we have 25 states with republican governors and legislators. policy takenrent by them. compare what is happening in heavily democratic states like

california and illinois who are facing bankruptcy in different ways. there are experiments that are publicized, let's let our citizens know about them. >> this nation that is extraordinary should not be that hard to sell. and that is the conservative principle to live by. thank you all very much for indulging us. >> on the final day of the conference, a discussion of current issues and the figure of the conservative movement.

washington times chief politicalwriter and radio commentators. this is about 45 minutes. it is so weird being back this year. i was beyond anything to come out here and say introduce them right now. but we all made a promise that come even though andrew was gone, we would stand around and we would fight. and with the crowds that came out this year, we proved we will fight. [applause]so let's keep it

moving and get on with our next panel. we will have the effect 2013 all-star panel. ad we have robert costa, national review washington editor and cnbc contributor. on the whiteily house, congress and campaigns. rob hallo is the chief political writer of "the washington times." he is the ford foundation fellow in urban journalism at northwestern university. excuse me if i am a little biased on this one. larry o'connor served as the cohost of "mornings on the mall "here in washington. host on thelar dennis miller show. tv the editor of "right bar

." videoeives all the content. and one of my favorite video talkshow hosts, rusty humphries. he is known for his bravery and are selling interviewing -- you can clap for rusty, go ahead. he is also known for his intellect in ringing new concepts into the conservative movement. need a strong woman to corral them all. we have genevieve lloyd's, the vice president from the heritage foundation. , the viceve woods president from the heritage foundation. , she worked more than 14 years in washington politics, 2000y and media in

campaigns and elections magazine named her a rising star in politics. i hope you all guys enjoy the panel. >> thank you. good afternoon, everybody. are you having a good time? think you will have a good treat this afternoon because we do have an all-star panel set up here. we'll talk a little bit about what is in the news. these are folks who all have opinions, like i'm sure many of you do. feedback onthere the new budget battles, the new pope, about senator rand paul and his events about a week ago. >> what did he do? >> we will get to that. we will talk about mayor bloomberg and other things. to get us started, there is no better man than president obama to launch our panel. he will be on the big screen.

this is president obama from earlier in the week talking about the budget and the fact that we basically need to raise more revenue. then we will hear from senator john tune. let's go with tape number one. >> i voted for the first three nominees by the president. partisanship.out i have allowed the president to take his political appointees, but i will not sit quietly and let him shred the constitution. i cannot sit at my desk quietly and let the president say that he will kill americans on american soil who are not actively attacking a country. the country needs more senators who care about liberty. but if mr. paulus to be taken seriously, he needs to do more than -- but if mr. paul wants to be taken serious a, he needs to do more than -- he needs to know more about what he is

talking about. >> ok, that was not president obama. we talked earlier this week about this gigolo story. senator mccain did not have quite the respect for senator paul's filibuster as many others did. what is your take on what happened last week? >> i think senator paul is one of the most fascinating figures in the republican party right now. when his father was retiring, many thought that the republican wing would be suffering. i name the future of the republican party. instead of making a broad argument for the post romney am , he used there era brennan nomination for the cia and made a case for. that is different from his father. his father was mainly seen i mainstream press as a

libertarian crank of sorts. rand paul has more broad appeal. a reporter here at cpap, i think he has a very strong chance of winning the straw polls with a lot of momentum and enthusiasm for him. and john mccain has apologized for that comment. i think even mccain realizes, as a grandee in the party, that the parties moving in a different direction, that the appeal of a nonintervention in foreign- policy is really picking up's read. rand paul stop by national review and he is a charismatic figure. that matters in politics. we saw his speech here and elsewhere that this is a guy who resonates on the floor and i think he has a bright future in republican politics.

>> did john mccain revised his remark? i did not know that. >> he apologized. >> good for him. he was jealous that someone could stand up for 12 hours without urinating. >> rand paul had help with other folks. i agree with the fact that we ought to be putting pressure on the justice department and the administration to come forward with a lot of clearances. what was your take on it? >> given the situation he's in, many conservatives -- his father could walk into a room and rand is the opposite. rand looks for ways to diffuse the situation. people who have served in politics understand how important that is. i had the privilege of going with rand paul and his wife and two of his sons to israel right outside of jordan in january. what i saw was amazing politician. a man who maintains his principles. he did not deevevate an inch.

-- deviate an inch. we traveled with jewish americans and spent eight days even though he was telling isreali conservatives that it might not be a good idea to build the new settlement, but i don't think the united states should tell you what to do.

he takes it seriously. he's got everything a successful conservative politician should have to win the white house. therefore, given the history of this country we know it is not possible. \[laughter] >> the personality might be a factor but what about the debate about the drone issue. do you think that resonated with the public? does it change the dynamics bond the personality and the rising star of rand paul? >> i don't think so. i think it ended up being about rand paul. the good thing is he wrapped the entire conversation around the constitution or he wrapped the discussion around the constitution.

the founders were so brilliant in laying out the constitution and the bill of rights and it is such a simple document that i think there are fundamental -- even people coming out of public school understand about the constitution. when he laid out the question, the very simple question of whether the chief competitive -- executive, the president, can he do that this and the answer has to be no. the fact that he got that shows that the president obama administration has carried off this robust war by drones. 4,800 people have been killed by drone strikes under the obama administration. that is an astounding number.

i think it is troublesome. the fact that rand paul had to go to such lengths to get that simple answer that is what resonated. i don't think it advanced the drone question that much but that is the beauty of politics in 2013. rand paul is pretty low key? he gave almost a lecture here. he is charismatic but he doesn't a -- >> i'm glad to see a politician stand for something, has core values. in something. stand up for something. on the other hand you have john mccain stuffing his face for president obama. if he had core values and core con visions he did not like what rand paul stood for, go to the filibuster and call him on it. what did he do? he waited until the next day, had a nice party with president

obama, fed that fat face of his and then came back to the floor and made an issue about it. i understand that john mccain is a big supporter of the war on terror. i am as well. i understand a guy who has been been through wraar. i have been to iraq, i've been to afghanistan. my father was killed in vietnam. i get the concept of standing up for the military, protecting our country. john mccain, if you want to protect the country, how about this, how about sticking with your pledge to build the damn fence. then we will talk! are you here? don't be afraid to get a little rowdy. make some noise. there we go! >> that is what we need. >> by the way, i'm done. >> come on back, rusty.

i do want to move to that dinner that you referred to and this whole debate about the spending and the budget and the like. let's see if we can roll the clip that is president obama -- i wish it was senator obama. >> are you referring to michelle four years from now? >> be careful what you say. let's roll the clip on president obama. >> i think what is important to recognize is that we have already cut $2.5 -- 2.7 trillion out of the deficit. in the sequester stays in, you have over $3 trillion in deficit reduction already. we don't have an immediate crisis in terms of debt. for the next 10 years it is in a sustainable place. >> it's amazing what the deaf ear that the president has around us. $16.7 trillion in debt. we'll add to it.

while the president has been in office we've added $6 trillion in debt. he made a comment he said he did not want to balance the budget for the sake of balancing the budget. you balance it to get control of the runaway spending. >> where do you even start? we don't have a problem right now? >> either the president is the biggest liar in the history of the united states of america, or the dumbest human being ever. \[applause] i have a 12-year-old daughter who understands that you can't keep spending money or you don't have enough money to buy your one direction tickets. your direction was your garage band. >> thank you. he can't be this dumb. he can't be this dumb.

>> he's not dumb. >> he wants to be generous. the president called the george w. bush deficit unpatriotic and i believe that was $12 trillion ago. also, the federal government has raised more money via income taxes in its history and this is under the evil george bush tax cut, which proves, by the way, that that lowering taxes brings more money into the federal government. thank you. the president says we don't have a long-term debt crisis but when there is discussion going on with republican leadership he is pushing to raise taxes. if we don't have a debt problem then why do you want to raise taxes? george stephanopoulos' follow-up question was so tough. >> i was given the microphone because my voice doesn't carry or because of the symbolism.

i'm going to put -- i'm taking a wild leap here. i'm going to put this panel down as skeptical about the current president is that right? >> that might be right. >> don't start now. >> i think it is interesting when you watch the politics of what president obama is doing in that interview. i think everyone in this room when you talk to conservative activists that everyone thinks there is a problem and there needs to be a balance in four years or 10 years. the broader question is, when you talk to republicans privately, senators and congressman, they are worried after the 2012 election the residents of the ryan budget, it did not play.

they wonder when they go to 2014, everyone might recognize it as a problem. but they think is obama continues to talk about taxes on the rich, taxes on the corporation he can craft a majority. in the speech yesterday, he's talking about republican messaging. it is too much about budgets? should it be more about tax cuts or growth? how do you articulate a message that wins? ryan budget is popular with conservatives. i just wonder in the future, if that romney pick of ryan if it is going to move in the direction of it is all about the budget. if you want to balance the budget you have to do things now. there will be a debt crisis. but it is complicated. are people paying attention? do people beyond cpac care? i think that is what obama is betting on. >> you used the word austerity

and i see congressmen using austerity. american people know that word, austerity links to riots in the streets in paris and athens. austerity takes the yummy things away from them. that is the worst word to do. that means you can do things with that money. that is what we need to talk about. hopefully, ted cruz will send that message and he will not use the word austerity. >> part of the problem we have is president obama does something brilliant and he uses emotion. that is what resonates with the low-information voter. that is not their fault. they have kid, they have family in their life and the kardashian family is show is awesome. i bring that up because when

conservatives get up $1.5 trillion -- we throw out numbers and people say let's turn the channel. we need to work on messages that resonate on an emotional level with regular people and do in a way that they say that makes sense. we can't spend that money. obama is out there saying i'm cutting the deficit. we need to get angry because the american people are angry and obama is lying to you. we need to make that very, very clear. that's right! \[applause] >> the white house belongs to the conservative and anger is not what it takes. it takes an understanding of who obama is and what he is up to. what he is up to he does very well. hen wants to take this -- he wants to take this country to a state of socialism, which has not been achieved but it came

close during the nixon administration. obama is doing what he thinks is good for america. all of us know that every time that has been tried the opposite has happened. people become poorer. except for the few elite at the top who run the political system. obama is doing a good job of trying to achieve socialism in america. the task of conservatives is to do a better job of explaining why socialism doesn't work and why free markets do work. without using the cord compassion but explaining why compassion is capitalism.

>> it has to be done on a level where it affects real people. >> you're using brilliant words but most people are going i don't get it. >> we're putting on this kind of debt on the next generation, this is immoral, talking about balanced the budget. why is it a bad goal and somebody said this earlier this week said this very thing. shouldn't we have a goal? >> did john mccain revised his remark? i did not know that. >> he apologized.

by the time a third grader graduates from high school we have balanced the budget in this country? we should make that promise, it is doable. even paul ryan whose budget did not balance the budget comes out with one that does. >> how to make it personal? joe made this case and we wrote articles about this. during the sequestration battle, obama gave his speech about the horrific sequestration and how bad it was. he was surrounded by the village people. he had a person behind him with a hard hat and make an native american. when john boehner came out he had a doomsday clock behind him, counting down the days to the sequester. he wanted to point the blame to obama. we should take credit for this. for the first time we're going to sort of cut spending at the federal level and we're going to talk a how that will help people in the long run. >> one quick thing. i ask people at cpac what they think about the second obama term and the real challenge for conservatives is you're dealing with a democratic senate and democratic white house. it is easy to propose a 10 year balanced budget like the conservatives are doing in the house but that is not going to be political reality in the short term. on one side you're articulating

your principles and that is a big part of politics. but are conservatives going to be open to a grand bargain, most say no. they don't want any kind of revenue, any kind of taxes. some are ok with tax reform. but if you're going go through the text couple of years as a lawmaker you're dealing with a president who is liberal. i think that is an open question for the movement and for the party. >> rusty, i will start with you. if you were advising the conservatives within the republican party, what would you tell them to do for what robert is saying here, in terms of getting on the right course to solve this problem but, two, recognize you have elections coming up in a year and half. you have to deal with the political reality as well. what would you advising people that are coming out with republican budgets to do? >> we have to cut the budget. but we have to have a message --

>> that is not simple and you know it. >> of course it is simple. there are so much waste and fraud -- of course it is simple. >> it is understand but not simple to do. >> it is more simple than anything they are not doing, they are not trying to. the problem is -- >> you have to face that fact. the people who are going to vote for our team has an invested interest in socialists. >> that is not the problem. >> we're not going to get anywhere. >> i'm not willing to give up or sell out. >> i'm not saying give up. >> i'm not going to say there is nothing we can do so we might as well keep up staying in pain. i'm not doing it. we need to show why it is in the best interest of the people in our country to cut the size and

scope of government and have a message that makes it, again, that we can understand what it is. not everybody went to ivy league college, i know your smart. i take notes to read your stuff, which is good. not everybody wants to do that. we have to make it -- again, obama is doing a great way -- they have people crying up there and babies and women, they are all going to do -- to die because we cut 14 cents. we have to do it more on a emotional level to get people to want to understand what is going on. >> there is a way to do it. i feel a little bit of hope. i think the sequestration has been fantastic in terms of narrowing down this discussion and focusing. the white house tours question was brilliant. the obama administration walked into it. earlier this week, representative andy harris, a doctor from maryland --

[applause] >> right? i just moved here and i'm from california. i feel right at home in maryland. you have to watch out. he was on the appropriation committee and he had the president of the disease control center in front of him. you sent out this pamphlet and you're cutting because of the sequestration and 250,000 children in maryland would go without immunization and i have the obama budget in front of me. you were going cut $58 million and no children were going to be go out immunization. that proves they are lying to you. number two, they are using children to prey on you and number three, you can cut without these affects being as disaster ours.

call the president out on here and you'll see how the president is manipulating you through the media. this president did not run the election on gun control. children in his own home district are getting slaughtered on a nightly basis and he says nothing about that. this is the one president and the one attorney general, eric holder can that can stand up in the african american commune in urban centers and make a difference with gang bangers. stand up and say the culture and violence in our community must end and it must end today. he won't say that, he will talk about "assault weapons" and children of sandy hook. >> are you asking for more gun control from --

>> no, i don't want the government controlling anything. >> but ralph -- [applause] >> there you go. what about -- these guys are making a strong case. they are going on the offense. >> yeah. this is built on lies. we're not having congressmen coming out here and saying president obama is lying to you. we can't use those words. yes, he is lying. i don't know how this guy can get up and look himself in the mirror and say i'm going to lie to the american people. i could not do it. >> the republicans have been doing it as long as the democrats have been doing it. >> that's why we're trying to change things. that's why we're here at cpac. >> why is it so hard for republicans to stand up with true moral outrage and talk

about the fact that if you want to be concerned about social security and medicare and these problems, it is the president's plan that is driving more people into debt and eventually destroying any safety net that we have in this country for any body. if you're really absolutely concerned about helping those who need help, we need to go after and reaffirm these programs and address it from that side. why is there no moral outrage on the conservative side -- not the conservative side but the republican side? >> i think republicans and conservatives deserve credit for making the case for fiscal reform. i don't think it is a case of not willing to go into battle against the left and against the democrats. i think republicans worked their hardest to try to make that case. i think the broader national case is who is listening? who is agreeing with this? how do you get more voters to agree with this? the problems is clear.

the problem is also within the republican party. sequestration is a great example. before the election there were many interviews with republican leaders and republican politicians who were worried about the sequester and complaining about it. after the election many conservatives say let it happen. let the cuts go through, it is a silver in the budget. conservatives have a confusing message. there are clearer messages on entitlement reform. if you're listening for the right position versus the left position it is not entirely accurate and clear. >> the republicans have not presented a budget of them that could cut social security, medicare, and other entitlement programs. if you're a conservative who should you focus on? the democrats are going to ask for what they want and it is the opposite of what you want or are

you going to ask the republican party as the only vehicle for conservativism in this country to do what we ask -- what you ask it to do? >> let's see what the committees do when they come out with their budget. i think it might be a slight difference than what we saw with the ryan budget. i want to move on to another topic with what happened earlier this week across the pond, as we say, with the announcement of a new pope. it is not a political story but it has a huge debate. anybody catholic? we'll let you comment first but let's see chris mathews on the selection of pope francis. let's roll that clip. >> what we've seen here the election we're basing this on small evidence. kind of a papal gala. bob from california, someone who

is culturally conservative on issues like abortion but also a liberal in terms of economics. we're familiar with that point of view. these are conservative catholics that are prominent in pennsylvania who are conservative and economically liberal. >> i sensed a remarkable consensus that we need a man who is wholly, we call him the wholly father. like benedict was and john paul. we also needed a man who had a sound -- we got one. >> all right let me come to you. that's a little scary description there. >> thanks for the clip. we have tripled the audience of that show. [laughter] >> i think chris mathews -- by the way, i hope they never say i hate the fact that msnbc is

off the air. they are gold for us and we love them on that wall. i think people are misguided when they compare the roman church to american politics. they show to be the morons that that are, chris mathews. thank you. when catholics chose pope francis, they were not choosing a replacement of pope benedict, they were choosing a replacement of st. peter. his job is not to do what needs to be done with regard of the modern political scene. his focus is to continue the teachings of the church, the faith and morals that were handed down, what we believe, from jesus to st. peter. that is his job. that being said, he is a political figure, there are things he has to do over and

above that. we saw it done well by pope john paul ii. i was thrilled to come up of age of a reagan presidency and john paul. i think it is way early to suggest this guy is one way or another aligned with the democrat or republican party. however, i will say this, it is offensive to me that the obama administration set a constituent gent led by joe biden to have him represent our country. this was a great moment for this president to be -- if he wanted to reach across the aisle to ask paul ryan or newt gingrich to represent the catholics of america. >> i don't understand what chris mathews was talking about there. i would like to make a quick comment on the other video.

but timothy dolan, cardinal from new york, for people who think public life does not have a religious element or element of faith, they turn to cardinal dolan. he is interested in public service, engaging with politicians, he's friendly with paul ryan. he was the archbishop in milwaukee. he spoke at both conventions this past year. he was doubted as a papal -- he was even touted as a papal contender. i think with francis, larry is right, it doesn't make since to compare him to pennsylvania's bob casey. it is a wonderful moment for catholics worldwide to celebrate the new pope, he chose the name francis and to make it about american politics, no thanks.

>> i want to remember that. he said i was right. >> you don't hear that a lot, do you? >> let me tell you about chris matthews. years ago when he was doing "hardball" and he did not know who i was. he had me on the show and one time we were taking a break to go to the men's room. >> i like where this story is going. >> you people "the washington times" don't know how conservative i am. [laughter] don't let it go beyond this room. he was assigned to sell himself to me as a conservative. the guy you know for the last 10 years is what, probably the most liberal -- >> well, he hangs out in the green room populated by al sharpton and others he is the

conservative in the room. that guy that looks like chandler from "friends.? >> you're so mean. >> what? what? i'm sorry. >> herself the one thing -- i think the catholic church proves one reason why government and what we've been doing has been so wrong. we compete -- no, the catholic church is proving it. i'm not a bible scholar but i believe jesus said something you are your brother's keeper. it is not your government's your keeper. i'm supposed to do it myself. >> understand what obama does, he used that language i amy brother's keeper as an argument in favor of big government spending.

he takes the bible and takes jesus' message. >> that's the point. that is not what the bible talks about. it is not having the government doing it for you, that is your service to another. that is what conservativism is about. this is me choosing who i want to help and what i want to contribute to help somebody else if i choose to do so. in the catholic church is 10 to 15 times more efficient with money to the charities than government. >> the policies drives the catholic church out of the government. >> of course, they want to get rid of the tax credits. >> and because of same-sex marriage. up in boston the catholic church the out of the adoption business right now, because they are forced to give exact same

preference to a same-sex couple as to a male-female couple. they decided to completely get of the adoption business. so explain to me how the world is better off with the catholic church not being involved? >> one other thing. it snot like you can say, today abortion is ok. it is not your book. you didn't write the bible. we don't get to change what is in there. if you believe in catholicism or the bible, we don't get to say i don't like that page. >> i hope he is hearing that because he's little off. >> this particular pope was opposed to giving to politicians who supported abortion. that is a comment he made years ago. >> which makes obama's administration's decision to send over biden is more controversial. it will be interesting to see

what happens when he goes up to the aisle to receive communion. >> so much influence that has on the culture and so to see that pick that was made -- by the way, the cardinals we think the pick came from higher. let's talk about the president obama's white house tours then i want to get the bloomberg clip and get your reaction on that. >> i'm asking is there a way to accommodate schools, who traveled here with bank sales. -- with some bakes sales. >> using emotion. >> they can still come to tour. >> i think it is incumbent on government to tell people and let people make their own decisions. our job is to educate people and

the ban on bigger cup sizes was a way to remind you if you wanted 32 ounces you can take two cups but you should take one. people have a right to make products and people have a right to buy them. i don't know which one comes first. >> i don't know which one comes first. >> that is amazing. i'm going to educate you then i'm going to beat you first. education is not by using force and by using the force of the government that is not the job of the mayor. this fat on me is not fat this is what i call storable goods because of the obama administration because if something goes wrong i'm prepared. >> we have a judge that got this right. so good for that particular judge. >> the soda ban question is great issue. this is what is so great about it. it is a fundamental that every common sense american can look to and it goes against all of us understand america to be.

that a government can tell a business they can't sell a big gulp. that is ridiculous. thank god for michael bloomberg to throw it out in front of us. that ban we can use as an example and show how the government is intrusive. do you want the government to run like new york? it was a local decision. if people want to live under that in new york let them. if people want to live out of new york and live in another state where they don't want to live under the ban, let them. that is the wonderful thing about our country. >> final comments on that? >> what is the question? >> is this the end of the silly bans? >> as long as you have people believe they are entitled by their intelligence or their

office to ram down the throats of other people their food choices, their beliefs, this will go on. what will change is when people who think the way in people in this room do. when people think these things through and get upset at the idea that the founder fathers of a man like that running anything. he thinks the government -- that we are governed by the government. actually, we gave the government the power to make decisions that we tell it we want. he has it backwards. liberals tend to see it the wrong way. >> he basically saying that he didn't know. >> this is so important, the soda ban thing. this is about obamacare. the moment that american people can see that government has a say in our health care, has a say in how we spend our money on our doctors and our health and it becomes a burden on the

government for people to get diabetes or get lung cancer or heart disease, as soon as it becomes a financial question the government is going to say we have to pay for these fat people. so we're going to restrict on and prevent you from getting fat. we have to get the regular people to pay attention. >> robert, last word and we're done. >> backstage there is a table full of water and right next to the table of water is big, big gulp. it had half a thing of soda and it was sarah palin's and one of the security guards said i want to put that on ebay if i can. that big gulp moment from say a palin that if a lot of people argue about the sequester, she has it right. she knows what appeals.

when she brought out that big gulp she said so much with that gesture. what she was talking about was going against bloomberg with liberty and freedom. conservatives really believe that freedom and liberty is going to bring them back. in a strange way, when bloomberg and liberal politicians use soda bans it is good for the conservative movement because it reminds them what they fighting for. >> please say thank you very much. please join me in thanking our panel. thank you guys very much. >> thank you. >> thank you. >> next, a senate $6ring on the jpmorgan chase billion trading loss.

and then a hearing on the house -- on the transportation security administration. then fred barnes. >> you are looking at the next --ustrial i to lucian in industrial revolution. it works by building up layers of plastic until your model is done and then you take it out and you have something. >> the real issue is not your home or using a network you trust. it's when you go out to you want to use an open wi-fi network, you don't know what the guy sitting next to you is doing. ?s he looking at your data no one else has done that. >> i checked in with a fever today. >> since you have a fever, we can use the digital camera to look at the patient's ear, nose

and throat. the highest quality, lowest cost healthcare in america. our vision is to create access to healthcare and consumer pharmacies across the country and makeer the doctors it convenient for you as a consumer and have a brilliant experience with healthcare, which is unlikely do have today. >> the latest on on consumer tech and communications at the ecs. >> the winners have been selected in this year's student cam documentary competition on the theme "your message to the president." the grand prize winner is josh stokes from connecticut can his video was on unemployment in america. received pennsylvania a prize for his documentary.

watched the winning videos these days on c-span. and see the documentary on student cam.org. >> on friday, former and current jpmorgan chase executives took responsibility and expressed regret at a senate investigative subcommittee for the decisions that led to the firms trading loss. the said committee has issued a resort -- a report claiming those losses on key executives at the firm, as well as on government regulators. this portion of the hearing is an hour and 40 minutes. >> let me first begin by extending a special welcome to

the new ranking member of the subcommittee. it's not the first time we have worked side-by-side. he has been a longtime member, a armer ranking member, was ranking member on the senate armed services committee. he has brought a great energy and a bipartisan spirit to our work together. we just want to welcome him as our new ranking member. senator johnson is a new member of our subcommittee. unlike senator mccain who has been a member, senator johnson has joined us. an april 2012, americans were confronted with the story of wall street excess and the derivative disaster now known as jpmorgan chase whale trades. the largest u.s. banks today are deep into derivatives, which are

complex financial estrogens that derive their value from other assets. the derivatives behind the jpmorgan whale trades or part of the so-called synthetic credit for folio, sometimes called an sep. outsizedially made bets on whether a particular financial estimate or entities were creditworthy or would default during its us five times. the bets were made by traders in the london office of the u.s. banking giant tp morgan chase. bets,trade, meaning there grew so large that they roiled ,he $27 trillion credit market single-handedly affecting global prices and finally attracted a media storm aimed at finding out who was behind them. the media unmasked

jpmorgan's chief investment office which had been known for making conservative investments with and composites. at first, jpmorgan ceo jamie diamond claimed that the reports were a tempest in a teapot. but then he admitted the truth, but that their credit derivatives had gone south, losses that exceeded $6 billion, but also exposing a litany of risk management problems in what had been considered one of america's safest banks. is the largest financial holding company in the united states. it is also the largest riveters dealer in the world can it is the single largest participant in world credit derivatives markets. it is consistently portrayed itself as a risk-management expert with a fortress alilance sheet. that ensures taxpayers have nothing to fear from its extensive dealing and risky derivatives. with that reassuring portrayal

was shattered when we'll trade losses shocked the investing public, not only with the magnitude of the losses, but it is the financial risk had been largely unknown to bank regulators. the said committee meets today after nine months of digging into the facts behind the quail trade. , thearn what happened subcommittee collected nearly 90,000 documents conducted over 50 interviews and briefings. it has issued a 300-page bipartisan report. while the bank and its regulators have cooperated with former j.p.ation, morgan employees declined to cooperate because they reside overseas and they remain beyond the subcommittee's in. -- the on the subcommittee's subpoena. it exposes the derivatives , ading culture at jpmorgan

pylon risk, the hidden losses, the disregarded risk limits, the manipulated risk models, the dodged oversight, and the misinformed the public. our investigation brought home one overarching fact been the u.s. financial system may have significant loughner abilities attributable to major banking involvement with high risk derivatives trading. for largest u.s. banks control 90% of u.s. to riveters markets and their profitability is invested in part on their derivatives holdings. nowhere more so than it jpmorgan. the whale trades demonstrate how credit derivatives, when purchased in massive quantities, can become a runaway train barreling through every risk limit. the quail trades also demonstrate how derivative valuation practices are easily

manipulated to hide losses. how risk controls are easily manipulated to circumvent limits. enabling traders to load up on risk in their quest for profit. firing a few traders and their bosses won't be enough to staunch wall street's insatiable appetite for risky derivative bets or stop the excesses. more controls are needed. among the most troubling aspects of the quail trades case history is the jpmorgan traders who were required to book the values of the business day, using the internal problems loss -- internal profit loss reports to hide. misreported values forced jpmorgan to restate its earnings for the first quarter of 2012. but to this day, jpmorgan maintains that the missed marked values did not on their

face violate bank policy or generally accepted accounting principles. but if derivative oaks can be cooked as blatantly as they were in this case without breaking the rules, then the rules need to be revamped. given how much major u.s. bring profits remain bound up in the value of their derivatives, derivative valuations they can't be trusted are a serious threat to our economic stability. the quail trades also demonstrate how easily i wall street bank can manipulate and avoid risk controls. the financial industry assures us that it can prudently manage high-risk it tvs because they are measured, monitored, and limited. as the subcommittee report illustrates in detail, j.p. morgan executives ignored a series of alarms that went off as the bank's chief investment office breached one risk limit after another.

,ather than ratchet at the risk jpmorgan personnel challenged and reengineered the risk controls to silence the alarms and it is difficult to imagine how the american people can trust major wall street banks to prudently manage the derivatives risk when bank personnel can relate gain or ignore the risk controls that are meant to prevent financial disaster and taxpayer bailouts. whale trades also show misstatements and concealment. in january 2012, the bank told theocc, the office of controller in the currency, inaccurately that the portfolio was decreasing in size. when it wasn't. thus troubling of all, when the media spotlight hit senior bank executives mischaracterized the nature of the quail trades -- of

gambling tracedes, apparently that the portfolios that bets would recover before anyone took a closer look. we took a closer look and it isn't pretty. a massive derivatives portfolio riddled with risk, a runaway train of derivatives trading blowing through risk limits, hidden losses, bank executives downplaying the bad bets, regulators who failed to act in together, these facts are a reminder of what occurred in the recent financial crisis. we just can't rely on a major ,ank to resist risky bets honestly report derivative losses, or disclose bad news without a strong regulator looking over its shoulder. backed by laws that require transparency, risk limits,

capital buffers against losses, and consequences for misconduct. that is the big picture. here are a few of the detailed findings from our investigation. they rapidly amassed a huge portfolio of synthetic derivatives. in part using federally insured depositor funds in a series of risky short-term trades disclosing the extent of the portfolio only after intense needy exposure